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Shifting tides of nuclear power generation rates

The Associated Press reported that power generation rates are likely to move higher to help finance new nuclear power plant construction. Wrote the AP: "The cost of labor, raw materials and technology have all grown exorbitantly. Because much of the new technology and building techniques are untested in the U.S., construction will be lengthier, more expensive and riskier, according to a report issued by Standard & Poor's."

For example, AmerenUE withdrew from setting up a nuclear plant because of the cost and regulatory uncertainty. Wrote the AP: "Residential electricity rates would have risen 1 percent to 3 percent annually for AmerenUE customers, up to 12.5 percent during construction, then actually dropped once the plant was in operation. A coalition of business and senior groups ran ads claiming rates could have increased 40 percent."

The AP wrote that regardless of the cost, "Americans will need to get used to paying more for electricity, and not just because of nuclear power. By [Nuclear Energy Institute Richard] Myers' estimates, rates that typically run about 9 cents a kilowatt hour figure to double over the next several years. The investment in new nuclear plants is just a fraction of the $1.5 trillion to $2 trillion that utilities and power generators, about five times the current market valuation for these companies, will spend by 2030 on new power generation, transmission, energy efficiency, smart meters and environmental controls," Myers said.

Associated Press, April 28